Page 16 - KZN Film A Report

Auditor’s Report: Predetermined Objectives
The Auditor-General (AG) currently performs the necessary audit procedures on the performance information to provide limited assurance in the form of an audit conclusion. The audit conclusion on the performance against predetermined objectives is included
Situational Analysis
in the report to management, with Material findings being reported under the heading ‘Report on Audit of the Annual Performance Report’ in the Auditor’s Report.
Refer to page 50 for the Auditor-General’s Report, published as Part E: Financial information.
Overview of the Service Delivery Environment
The impact of the COVID-19 pandemic at the beginning of 2020, led to massive economic disruptions and markets collapsing in all sectors of the economy. The leisure and the entertainment industry were amongst the most affected sectors according to financial data available. The sector’s resurgence from the pandemic would indeed require a fundamental shift in how things are done. The best hope for the industry is that the fourth industrial revolution (4IR) tools and artificial intelligence (AI) would spur the sector forward on a grand scale.
Internal Environment Analysis
The Accounting Authority of the KZNFC is the Board, appointed by the Executive Authority. The Board has five members, comprising of four non-executive Board members and one Executive Board member. Currently, the Board requires an additional non-executive member in order to be legally constituted in line with the legislation. The ongoing mergers has impacted on the appointment of additional members in order to strengthen the skills base and governance of its committees.
The KZNFC has three Business Units, namely the Office of the CEO, Finance and Administration; and Marketing and Industry Development (MID). The Entity has a staff complement of thirty-six employees, which is considered insufficient to serve the whole Province. Matters have been compounded by a moratorium on the filling of vacant posts, (with the exception of critical positions) and by a protracted merger process for public entities. This has resulted in a vacancy rate of 38.89%. To mitigate the risk of this high vacancy rate, the Board approved the appointment of temporary staff on short-term contracts as a stop-gap
measure which carries its own challenges, such as lack of business continuity and succession planning. Long-term and sustainable solutions are needed to ensure that there is organisational stability. KZNFC currently comprises 92% Black employees, 54% youth, and 63% women. During the financial year the Entity had eight interns, on a two- year programme at financial year-end. Two interns were employed on fixed term contracts while one intern secured permanent employment during the period under review.
KZNFC has continued to automate its operations in order to increase the efficiency and effectiveness of its business processes including SAGE (online procurement system); ESS system (performance management, leave etc.) and SHAREPOINT documents management. This assisted business continuity during the lockdown as all systems could be accessed remotely by authorised personnel and clients were able to continue engaging and being serviced by all KZNFC employees.
External Environment Analysis
Since early 2020, the COVID-19 pandemic has been accelerating structural challenges and trends that have long faced the media and entertainment (M&E) industry. The COVID-19 pandemic swiftly uprooted norms in every aspect of life across the globe. In a short period, consumer habits changed drastically as attendance at live events came to a halt and Internet data usage soared.
In 2020/2021, the drop in global entertainment and media revenue was the sharpest ever recorded and the COVID-19 pandemic will continue to shape business strategies throughout the telecommunications, media, and entertainment sector.
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KZN FILM COMMISSION ANNUAL REPORT 2020/2021